EDUCATION-GROWTH DYNAMICS FOR AUSTRIA: A CASE STUDY APPROACH

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Abstract

The main focus of this research is to establish the relevancy of the Keynesian theory in explaining education expenditure on the economy of Austria using a case study approach. Wagner (1890) and Keynes (1936) have been for a long time been the two major theorists on the relationship between education expenditure and economic growth. Both theoretical and empirical literature review concludes that the two variables relate to each other in two distinct ways, the popular one being that education boost the economy (Keynes view) followed by the Wagner view that says it is the economy that is doing well that pushes investment in education. A case study review for Austria clearly shows that an increase in education expenditure does not only constitute a significant portion of the GDP per capita in Austria but also provided a positive influence on economic growth and development. The author recommends Austria policymakers and responsible authorities to up their education development programmes and budgets in order to lay a strong foundation for sustainable economic growth and prosperity.

Key Words: Case study; Education; Economy; Austria

How to cite this paper: Tsaurai, K. (2015). Education-growth dynamics for Australia: A case study approach. Journal of Governance and Regulation, 4(1-2), 239-250. https://doi.org/10.22495/jgr_v4_i1_c2_p7